New and Noteworthy (Aug 3, 2017) August 3rd 2017

TEAM MEMO
To:          TEAM-IFPTE Local 161 Members
From:     TEAM Office
Date:       August 3, 2017
Re:          New and Noteworthy


  

The concern about the Plan’s health stems from the sentence: “If the Plan had terminated immediately and the company was unable to fully fund the deficit on termination then benefits would be reduced by 8.9%.”  This sentence summarizes the conclusion of a hypothetical calculation that had BCE gone into bankruptcy on December 31, 2016, the pension fund may have been unable to payout the full pension amounts.  There are no indications that BCE will be going out of business any time soon.  However, to address the hypothetical shortfall, pension legislation requires the Company to make additional contributions called “special payments”.

The calculation that assumes BCE will remain in business, shows that the Plan is funded to a level of 122.6%.


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